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An enterprise, informally, is a group of people engaged in purposeful activities with a common motive. This broad definition includes large corporations such as IBM and AT&T as well as small businesses, the executive branch of the United States government, and a small municipal agency. The enterprise test is that the motivation be common and that the activities be collaborative in support of the common purpose.
Why is an enterprise concept important? The enterprise concept raises the collaboration aspect and the common motivation that people tend to forget in their preoccupation with daily activities. An enterprise exists for a larger purpose than the output of daily activities. Threads link the activity and output of one person or organization with the activity and output of others. Understanding these linkages is a very important aspect of streamlining the collection of activities that together fulfill the purpose of the enterprise.